Japan is a fascinating country, one of those that is difficult to understand from the point of view of a Westerner. Perhaps because we ourselves have turned our backs on Asian culture during our years of teaching or because, simply, they have historical and cultural particularities that are difficult for us to assimilate.
What is certain is that the Japanese have deep roots in the consumption of local products. It must be taken into account that Japanese society is deeply nationalisticperhaps because it is surrounded by other countries where this feeling is also deeply rooted, such as China or the Koreas, which has caused continuous tensions in the area.
After the Second World Warthe United States financed the recovery of Japan, with the clear objective of putting a geopolitical plug on the communism that threatened from China and Korea. A movement that could have diluted this nationalist sentiment.
Little by little, the country grew and in the 70s it managed to diversify its industry and, at the same time, apply technical innovations that placed it at the global forefront in many sectors. Taking advantage of the weakness of the yen against the dollar, they decided to put all their efforts into export as much of your products as possible.
Those exports flooded the world economy with products. One of the most significant were cars. In its technical innovations, the country prioritized the efficiency of its engines, key to flooding the market when the oil crisis. Compared to American and European cars, The Japanese were cheaper and consumed less.
It was at that moment that the industry completely exploded and Japan decided to make a decision: it lifted tariffs on foreign cars.
Come and see
Japanese politicians must have thought something like this in 1978. In order to be more competitive in foreign markets, the country lifted all tariffs for those who wanted to import a car into their country. That is, any foreign brand could sell its cars in Japan without paying a single extra euro.
In Japan they should not have any fear of what was going to happen. Its industry was so powerful and the cultural factors were so determining that foreign vehicles have not fully penetrated the market.
For testing, In 2016 the European Union lifted the 10% tariff with which it taxed Japanese cars. The 3% that Japanese manufacturers paid for producing in Europe but using Japanese parts was also raised. In exchange, the European Union found the door open to sell other products, such as cheese or wine.
So, the European Union came from buying 575,000 cars from Japan worth 9,000 million euros while we only sold them 279,000 vehicles worth 7,300 million euros, they collected in The World. From here we can get two readings.
The European Union, a specialist in car exports, had only placed 279,000 cars in Japan in a market in which Almost five million units were sold in 2016. Of the 12 best-selling brands that year in the country, only one (Mercedes in tenth position) was foreign. And none of the 30 best-selling cars in the country were foreign.
The cars that the European Union managed to place in Japan were high-priced vehicles. The average unit cost Japan more than 26,000 euros while those purchased by the European Union cost less than 16,000 euros. That is to say, it was difficult for Europe (and very difficult) to compete by volume.
When Japan opened its doors to the world, it had to be aware of the country’s particularities. Tough emissions and space regulations have made cars disappear from the center of large cities. Since the 60s is applied in the country Shako Shomeishothe obligation to have a space where you can park your car to have the right to buy a car. In a country that is concentrated in cities, the limitation is decisive.
Furthermore, the Japanese customer fully trusts their companies and finds it difficult to open up to new technologies. The reception of the hybrid car compared to any other technology (and the resistance of the Japanese firms themselves to the electric car) is a good example of this.
To this we must add that, due to price, the large generalists cannot compete since local vehicles are much cheaper, taking advantage of the fact that production within the country is more competitive. The value of the yen, lower than the dollar, euro or pound, allows them to obtain large amounts of money for the development and manufacturing of a product that allows them to lower prices in their local market.
On the contrary, foreign companies that have to sell there face a cut market due to emissions regulations, the barrier of space regulations and that they have the obligation to change the production of the car since when driving on the left they need to position the controls on the opposite side. An added cost that creates another obstacle.
The result is that we Europeans and Americans end up offering Japan cars that are not interesting. In Japan, minivans and cars are a religion. kei carcontained on the outside and with a very large interior space. A type of car that has disappeared in Europe while in Japan the Toyota Sienta, the Nissan Note and the Honda Freed occupied the places of third, fourth and fifth best-selling car in the country.
And you can continue down the list of 20 best-selling cars in Japan in 2025. You won’t find a single one that is foreign. And, by the way, 13 of them are from Toyota.
Photo | toyota
A version of this article was published in April 2025
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